Media professionals set up cooperative fund to fix financial woes

Members of the media have established a cooperative fund, which they say could help fix financial woes that journalists and other members of the media currently face.

Media professionals have established a fund dubbed Media Development Cooperative (MEDECO), designed to empower the media through savings, loans, and investment opportunities.

MEDECO was established following the realisation that the previous Media Development Fund (MDF) did not fulfill its intended mission of supporting journalists.

According to Solange Ayanone, the Chairperson of MEDECO, the initial MDF structure faced significant limitations that hindered sponsorship opportunities and broader support.

We initially started as a media development fund to support journalists. However, we discovered that as an informal fund, we struggled to attract sponsors,” she explained.

In 2024, MEDECO finally received the license to operate as a registered cooperative, allowing members to enhance their offerings and tap into sponsorship opportunities.

“One of our main goals now is the media development fund, which will offer affordable loans,” Ayanone said.

MEDECO plans to venture into the hospitality sector, developing a hotel complex complete with conference rooms, bars, and recreational areas.

“These investments will serve as avenues for journalists to invest in and benefit from, creating a diversified source of income and growth opportunities,” she said.

MEDECO has already garnered a community of 100 members who have made a commitment to invest. The fund now aims to expand its base by attracting an additional 100 journalists.

This model aims to create a sustainable loop of financial empowerment, offering journalists a platform not only for their professional development but also for securing financial stability through profitable ventures.

Membership can leverage their shares in the association to secure loans from external financial institutions more easily. Members can also save with the cooperative at a reduced interest rate, further enhancing their financial stability and growth potential.

Emma Marie Umurerwa, Managing Director of Iriba News, an online publication based in Kigali, said that MEDECO is poised to help many private media companies currently financial difficulties.

“It is challenging for media organisations to find reliable markets where they can effectively deliver their services. This difficulty is compounded by the inability of the private sector to meet the broader needs of the media industry,” she said.

Umurerwa also pointed to technological advancements that have left many media organizations struggling to keep pace. As a result, many media employees experience delays in receiving their salaries.

MEDECO, she said, presents the first step towards uniting journalists to foster collective growth and improve living standards.

Her sentiments were echoed by Rene Anthere Rwanyange, Managing Editor of Panorama Media, who said the fund might address some of the issues the industry is facing.

“It has become evident that many media houses lack the necessary resources and, as a result, often media houses don’t get substantial returns from their operations. The fund could provideessential financial support to the media,” he said.

Unlike traditional bank loans which come with stringent requirements and extensive paperwork, Rwanyange observed that MEDECO could offer a streamlined solution to meet these financial needs.

source :the newtimes